Summer’s end may have led to the close of a strong home-buying season, but a decrease in distressed sales is helping prices maintain their yearly gain and some regions are still experiencing monthly price increases.

As of August 23, 2012, prices fell 0.4 percent in 25 major U.S. metropolitan areas from July 23, 2012, according to Radar Logic’s RPX Composite price. Year-over-year, prices were still up 4.5 percent, and year-to-date, the RPX composite showed prices have risen 12.8 percent, the largest increase for the period since 2005.

When Radar Logic broke down the data based on region, a more complex picture was painted.

“There was considerable variation in price performance from region to region. In some areas prices have clearly peaked for the year and are now declining, while in others prices are still rising,” the real estate data provider said in its monthly housing report.

The Midwest and the West saw monthly price gains and rose 2.5 and 1.2 percent, respectively. In the South, prices were flat, increasing just 0.1 percent. Radar Logic said the South may have reached its seasonal peak and begin its seasonal descent. The Northeastern housing market brought the RPX Composite price down month-over-month with its 3.1 percent descent.

Year-over-year, price gains were seen in the South (6.7 percent), Midwest (7.3 percent) and West (9.2 percent). On the other hand, the Northeast fell 2.3 percent, according to the RPX Composite.

Over the last year, REO and foreclosure auction sales have seen a significant decline, which has helped to push up prices.

According to Radar Logic, motivated sales, or sales of REOs or foreclosures, fell to 13 percent of the total transaction count, down from 23 percent a year ago.

This decline in motivated sales led to the yearly increase in the RPX Composite. Over the last year since August 23, the price for motivated sales has been 34 to 42 percent less than the price for all other non-motivated transactions, according to data from Radar Logic.

As the Federal Reserve launches its QE3 monetary policy, some interpret the plan as a sign Fed Chairman Ben Bernanke has “gone ‘all in’ on the U.S. housing market” and is clinging to hope the housing market can not only recover itself, but also restore the entire U.S. economy. This, at least, is the outlook of Global Markets Intelligence (GMI) Research.

The research firm suggests the Fed is turning to the housing market “as the last, best hope” for strengthening the overall economy and restoring “healthy self-sustained economic growth,” according to a GMI report released earlier this month.

“If QE3 does not work, we don’t think it’s much of a stretch to conclude that the U.S. financial system and economy is broken,” GMI stated, faulting “excess legacy indebtedness and excessive financial regulation” as the culprits.

As the Fed purchases $40 billion in mortgage-backed securities each month “for an unspecified but extended period of time,” GMI will watch vigilantly for signs of the plan’s success.

The first sign would be a sharp increase in mortgage applications. Specifically, GMI will look for the Mortgage Bankers Association’s purchase composite index to rise above 200.

“If the Fed is successful in supercharging the fledgling recovery in housing, we should see the index exceed 200 in fairly short order, presumably by the end of the first quarter of 2013 at the very latest,” GMI stated.

Following an uptick in applications, GMI would expect to see existing home sales rise, perhaps above the five million mark.

WASHINGTON – U.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to New York State and New Jersey, providing support to homeowners and low-income renters forced from their homes due to Hurricane Sandy.

Today, President Obama issued a disaster declaration for Bronx, Kings, Nassau, New York, Richmond, Suffolk, and Queens counties in New York. The President also issued a disaster declaration for Atlantic, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean and Union Counties in New Jersey. These declarations allow HUD to offer foreclosure relief and other assistance to certain families living in these counties.

“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said Donovan. “Whether it’s foreclosure relief for families with FHA-insured loans or helping these counties to recover, HUD stands ready to help in any way we can.”

Ø Making mortgage insurance available – HUD’s Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;

Ø Making insurance available for both mortgages and home rehabilitation – HUD’s Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and

Ø Information on housing providers and HUD programs -The Department will share information with FEMA and the State on housing providers that may have available units in the impacted counties. This includes Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers.

Instead of finding clever ways to chase shadow inventory, Zillow has decided to make things easy for thrill-seeking homebuyers and investors who are trying to track down unlisted, invisible inventory.

The real estate data provider announced Thursday it is now providing information on 1.2 million pre-foreclosure and foreclosed properties at no cost. The homes provided through Zillow are not yet listed and apparently, are yet to be found on any Multiple Listing Service (MLS).

Before, only certain investors were privy to such information.

“For the first time, home shoppers are able to see the entire scope of housing inventory in their area, both pre-market and for-sale, side by side,” the company said in a release.

According to Zillow, 55 percent of homebuyers have considered purchasing a foreclosure, but the problem was where to find the information.

“This is another tremendous step forward in consumer empowerment. Zillow is taking information that was really only available to a select group – in this case, savvy investors – and making it more easily available to interested home buyers,” said Spencer Rascoff, Zillow’s CEO. “What’s more, bringing this information to light, and taking this inventory out of the shadows, can help bring these homes to market faster than ever before.”“

The pre-market inventory includes nearly 1 million pre-foreclosure properties, or homes that have begun the foreclosure process or have been scheduled for auction.

In addition, Zillow’s inventory has more than 260,000 unlisted foreclosed properties.

Zillow will also include its own estimate of the sale price of the home if sold as a foreclosure with the percentage and dollar discount based on fair market value. Foreclosure details will also be included, such as the timeline of the foreclosure process, unpaid balance, and the lender.

Another added feature will be 147,000 Make Me Move properties. For this feature, homeowners name a price for which they might sell their home.

At the same time, foreclosure activity shot up 69 percent in New York. Tampa (43 percent), Philadelphia (34 percent), and Chicago (34 percent) also saw significant increases in activity.

“Still, rebounding foreclosure activity in some markets remains a threat to home price stability and growth in those markets,” Blomquist added. “The rebounding foreclosure activity tends to be in markets where the foreclosure process slowed down most dramatically in the last two years, resulting in a buildup of foreclosures in limbo that lenders are finally working through this year.”

Seven out of 10 metros with the highest foreclosure rate were in California, despite significant decreases in foreclosure activity.

For example, Stockton ranked number one for its foreclosure rate, where one in every 67 housing units received a foreclosure filing. But, foreclosure activity in the metro fell 21 percent from a year ago.

Pointing to slow employment growth and an “elevated” unemployment rate, the Federal Open Market Committee said Wednesday the Federal Reserve “will continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month.”

At the same time, the FOMC said it would maintain the target federal funds rate at 0 to 1/4 percent and said the “exceptionally low levels for the federal funds rate are likely to be warranted at least through mid-2015.”

The Committee voted 11-1 with only Richmond Fed President Jeffrey M. Lacker dissenting.

The FOMC decision and action had been expected.

The policy actions will not directly address the FOMC’s dual policy mandates of maximum employment and price stability, but are expected to “put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative” and “to support a stronger economic recovery.”

Despite its observations about the labor sector, the Committee, in its last meeting before Election Day, painted a slightly upbeat picture of the economy.

“Household spending has advanced a bit more quickly, but growth in business fixed investment has slowed,” the FOMC said at the conclusion of a two-day meeting. The housing sector has shown some further signs of improvement, albeit from a depressed level. Inflation recently picked up somewhat, reflecting higher energy prices. Longer-term inflation expectations have remained stable.”

The U.S. Department of Justice sued Bank of America for over $1 billion for alleged mortgage fraud related to the sale of loans to Fannie Mae and Freddie Mac, Manhattan U.S. Attorney Preet Bharara announced in a release Wednesday.

According to the release, the civil fraud suit is a first for the Justice Department for mortgage loans sold to the GSEs.

The lawsuit stems from origination practices from Countrywide, which B of A acquired in 2008.

According to the complaint, from 2007 to 2009, Countrywide implemented a loan process called the “Hustle,” which pushed loans through the origination process by eliminating quality checkpoints and by compensating employees based on the volume of loans originated.

For example, the complaint stated Countrywide eliminated the use of an underwriter for many high risk loans and instead used loan processors who previously weren’t even qualified to answer borrower questions.

The complaint further alleges Countrywide informed Fannie Mae and Freddie Mac that it had actually tightened its underwriting guidelines during this time. As a result, the complaint stated thousands of defective loans were sold to Fannie Mae and Freddie Mac, resulting in over $1 billion in losses and loans that went into default.

“For the sixth time in less than 18 months, this Office has been compelled to sue a major U.S. bank for reckless mortgage practices in the lead-up to the financial crisis,” said Bharara.

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